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Level 2

Clarification of Quickbooks Online VAT codes for UK business buying and selling to EU business

Can someone clarify which vat codes we should use in Quickbooks online please?

We are a vat registered UK business buying goods from mainland EU suppliers and selling goods to mainland EU businesses. So we provide our vat number and buy from the EU without the vat, then we also sell to EU businesses without vat when they have provided us their vat details.

I would expect when we enter a purchase receipt into Quickbooks for an EU purchase that it would show no VAT, but that the vat element would be recorded on the box 2 and box 4 sections of the vat return. Should we be using ECG 20% for this?

Then when we enter sales receipts where we haven't charged VAT to our EU business customers, are those classed as ECG 0% because they're handling the vat in-country?

thanks in advance,

James

Solved
Best answer February 07, 2019

Accepted Solutions
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Level 4

Clarification of Quickbooks Online VAT codes for UK business buying and selling to EU business

Nearly correct its actually 20% ECG for purchases. & 0% ECG for sales.

ECG 20% This accounts for 20% vat on acquisition so posts to boxes 2 4 7 & 9.

ECG 0% zero rates your EC sales so they can account for Vat on their acquisition at their Vat rate.

View solution in original post

7 REPLIES 7
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Level 4

Clarification of Quickbooks Online VAT codes for UK business buying and selling to EU business

Nearly correct its actually 20% ECG for purchases. & 0% ECG for sales.

ECG 20% This accounts for 20% vat on acquisition so posts to boxes 2 4 7 & 9.

ECG 0% zero rates your EC sales so they can account for Vat on their acquisition at their Vat rate.

View solution in original post

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Level 1

Clarification of Quickbooks Online VAT codes for UK business buying and selling to EU business

Hi Gordon

Could I get clarification on this?

The op does not say wether their goods actually cross the channel and enter the UK or not.  Our scenario is that our goods are bought by us in the EU then delivered to vat registered customer in the EU without crossing into the UK. So we have a triangulation situation.

So for us these sales should show on the vat101 but not in the regular VAT return as trigangulated goods should not, as I understand it.

Would you know which codes we should be using for sales and purchases in this scenario?

Thanks for any advice.

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QuickBooks Team

Clarification of Quickbooks Online VAT codes for UK business buying and selling to EU business

Hello

 

Thanks for your question. we can not advise which code to use however you can have a look at the article here  which shows the EC codes and which boxes they affect in the return. Most likely it is an ECS code if you want to hit the 101 report. It is worth checking with an accountant or HMRC to make sure the code you choose is the right one for your business

 

Kind regards

 

Emma

 

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Level 1

Clarification of Quickbooks Online VAT codes for UK business buying and selling to EU business

Can you help with EC services, I have a service provided from the EC, we are vat registered in uk and the service provider is vat registered in their country.  What code on the uk quickbooks.  I use 20% ECG for goods, but not sure on the service side.  

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QuickBooks Team

Clarification of Quickbooks Online VAT codes for UK business buying and selling to EU business

Hi Online24

 

If you are providing or receiving a service from the EC you can use 20% ECS or 0.0% ECS for purchases and for sales 0.0% ECS.

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Level 1

Clarification of Quickbooks Online VAT codes for UK business buying and selling to EU business

This is correct if you provide VAT number to the EU supplier in case you are purchasing from EU, now I have another situation, I didnot provide my VAT number to the EU supplier and he charged me 20% VAT on the invoice, the supplier is based in Ireland or Luxembourg, when I get the invoice it contain net amount + 20%vat= gross amount. In this case which vat code I should use? If I use 20%ECG and take net amount then the total amount I paid is not matched with the invoice, is this vat reclaimable? Please help

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QuickBooks Team

Clarification of Quickbooks Online VAT codes for UK business buying and selling to EU business

Thanks for reaching out to the Intuit Community, @Usman249.

 

When you're using the VAT ECG the tax will include the transaction so that the Gross amount will not change.

 

I'd also recommend reaching out to your tax adviser, or contact the HMRC to classify the correct taxes.

 

For additional information, I'm including some helpful articles that you can check the affected boxes for each VAT codes work in QuickBooks Online:

If you have any other questions concerning your QuickBooks Online account, please don't hesitate to visit us again. Have a great day!